Honduras » Taxes

Income Tax	VAT	Capital Gains Tax	Transfer Tax	Property Tax

Income Tax

For residents of Honduras/The Bay Islands, worldwide income is taxed on a sliding scale from 0% (on annual incomes under £1,880 per annum) to a maximum of 40% (on annual incomes over £28,730 per annum). Nonresidents are only taxed on income derived from within Honduras.

VAT

Residential rentals and sales are subject to 12% GST.

Capital Gains Tax

Regardless of residency, 10% tax is applied on capital gains arising from the sale of a property in Honduras.

Transfer Tax

There is a tax on the transfer of real estate. Transfer tax is 15% on all property transfers.

Property Tax

Annual property taxes are relatively low. Collected by each municipality, the average amount levied is 0.25%.